Bitcoin Traders Are More Likely To Follow Whales Than Ethereum Users

A recent working paper from the Federal Reserve Bank of Philadelphia has identified a major difference in how crypto traders respond to whale alerts. The study analyzed public notifications of large transfers, finding that Bitcoin holders are quick to adjust their positions when a whale makes a move. Within 15 minutes of a whale alert, small and medium Bitcoin wallets showed a clear spike in activity in the same direction as the whale transaction.

In contrast, Ethereum users showed little to no immediate reaction to similar alerts. The research suggests this behavior remained consistent even after the Ethereum network switched to proof of stake. The authors point to differences in market structure, noting that Ethereum activity is often funneled through complex venues like layer two protocols and smart contracts, which makes tracking individual investor sentiment more difficult than on the Bitcoin network.

This research highlights how Bitcoin remains a highly reactive market where investors keep a close eye on large holders. While Ethereum saw lower volatility following whale alerts, Bitcoin experienced temporary price swings shortly after these public notifications were released. As the market matures, these patterns provide a useful look at how different networks attract distinct types of trading behavior.